A. For the fourth management period, 2010 to 2020, the director shall promulgate a management plan for each initial active management area not later than January 1, 2008. The director:
1. Except as provided in section 45-563.02, subsection B, shall include in each plan an irrigation water duty or intermediate water duties. These duties shall be calculated in the manner provided in section 45-566, subsection A, paragraph 1 and shall be subject to an exemption under subsection E of this section. In setting the irrigation water duty or intermediate water duties for the fourth management period, the director may adjust the highest twenty-five per cent of the final irrigation water duties established within an area of similar farming conditions pursuant to section 45-566 by reducing each water duty in an amount up to ten per cent, except that, in making the adjustment, no water duty may be reduced to an amount less than the greater of the following:
(a) The highest water duty within the lowest seventy-five per cent of the water duties computed within the area of similar farming conditions for the fourth management period.
(b) A water duty computed for the farm unit under this paragraph using an irrigation efficiency of eighty per cent.
2. May include in each plan, if feasible, additional conservation requirements for non-irrigation uses and intermediate conservation requirements, which shall apply subject to section 45-567.01.
3. May include in each plan, if feasible, conservation or rate of use requirements for deliveries of untreated water by large untreated water providers based on the use of the latest commercially available conservation technology consistent with reasonable economic return.
4. May include in each plan, except the plan for the Santa Cruz active management area, if feasible, additional economically reasonable conservation requirements for the distribution of groundwater by cities, towns, private water companies and irrigation districts within their service areas. In the plan for the Santa Cruz active management area, the director may include, if feasible, additional economically reasonable conservation requirements for the distribution of water, other than stored water, withdrawn from wells, for cities, towns, private water companies and irrigation districts within their service areas.
5. May include in each plan, if feasible, a program for additional augmentation of the water supply of the active management area, including incentives for artificial groundwater recharge.
6. May include in each plan, if feasible, in cooperation with the department of environmental quality, an assessment of groundwater quality in the active management area and any proposed program for groundwater quality protection. Any such program shall be submitted to the legislature for any necessary enabling legislation or coordination with existing programs of the department of environmental quality.
7. May include in each plan, if feasible, a program for conservation assistance to water users within the active management area.
8. May include in each plan, if feasible, a program for purchase and retirement of grandfathered rights by the department.
9. Shall include in the plan for the Santa Cruz active management area criteria for the location of new wells and replacement wells in new locations consistent with the management goal of the active management area.
10. Shall include in the plan for the Santa Cruz active management area an evaluation of the potential impact of the plan on the Tucson active management area.
11. Shall include in the plans for the Tucson, Phoenix and Pinal active management areas recommendations to the Arizona water banking authority regarding all of the following:
(a) Whether additional water storage in the active management area would help to achieve the management goal for the active management area.
(b) Where additional water storage in the active management area would be most useful to achieve the management goal for the active management area.
(c) Whether extinguishment of long-term storage credits accrued or to be accrued by the Arizona water banking authority would help to achieve the management goal for the active management area.
B. In the plans adopted under subsection A of this section, the director shall establish the historic annual net natural recharge for any groundwater replenishment district in the active management area, computed by determining the net natural recharge, as defined in section 48-4401, for the groundwater basin beneath the district during calendar years 1977 through 2006 and dividing the result by thirty.
C. Within thirty days after the management plan for the fourth management period is adopted, the director shall give written notice in the manner and to the persons prescribed in section 45-565, subsection B and shall give written notice of the non-per capita conservation program established pursuant to section 45-567.01 to all municipal providers. Two years before the compliance date specified in the management plan for any irrigation water duty, intermediate water duty, conservation requirement or intermediate conservation requirement, the director shall give additional written notice by first class mail to the last known addresses of the persons prescribed in section 45-565, subsection B and this subsection.
D. Except for a person who obtains a variance under section 45-574 or who is exempt from irrigation water duties under section 45-563.02, subsection A, all persons notified pursuant to subsection C of this section shall comply with the applicable irrigation water duty or conservation requirements for the fourth management period not later than January 1, 2020 and shall remain in compliance until the compliance date for any applicable irrigation water duty or conservation requirements established in the management plan for the fifth management period. If intermediate water duties or intermediate conservation requirements have been established, a person to whom those water duties or conservation requirements apply shall comply with the intermediate water duties or intermediate conservation requirements not later than the compliance date specified in the management plan, unless the person obtains a variance pursuant to section 45-574 or is exempt from intermediate water duties under section 45-563.02, subsection A. A person who obtains a variance under section 45-574 shall comply with the applicable irrigation water duty or conservation requirements by the date specified in the variance and shall remain in compliance until the subsequent compliance date for any applicable irrigation water duty or conservation requirements established in the management plan for the fourth management period or, if that management plan does not establish any applicable subsequent compliance date, until the applicable compliance date established in the management plan for the fifth management period.
E. A person who is entitled to use groundwater pursuant to an irrigation grandfathered right may apply to the director at any time during the fourth management period for an exemption from the irrigation water duties established under subsection A, paragraph 1 of this section. The director shall grant the exemption if the person demonstrates to the director's satisfaction that granting the exemption is consistent with achieving the management goal of the active management area and that one of the following applies:
1. Withdrawal of groundwater pursuant to the irrigation grandfathered right during the management period will intercept groundwater that would otherwise flow out of and be lost to the active management area within the next fifteen years without entering another active management area.
2. Withdrawal of groundwater pursuant to the irrigation grandfathered right during the management period will prevent encroachment of a rising depth to groundwater level that will cause waterlogging problems within the next fifteen years.